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“The reason for the increase in the accumulated benefit obligation compared to plan assets is mainly caused by the fact that the interest rate decreased from 5.5% in 2003 to 4.75% in 2004 (impact approximately €560m),” TPG stated in its 2004 annual report.

TPG added that its major plan, Stichting Pensioenfonds TPG, returned 8.8% on assets in 2004, compared to 9.1% in 2003. The scheme is around 93% covered.

Pension assets rose to €3.69bn from €3.28bn at the end of 2003 – while the accumulated benefit obligation was up to €4.64bn from €3.39bn.

It added that the equity weighting rose to 44.9% from 43.6% during 2004, while fixed income fell to 46.5% from 46.9%. Real estate weighting fell to 8.6% from 9.4%.

It said it would increase its equity weighting. “It is expected that over time the strategic asset mix will gradually move back to a higher percentage of equity at the cost of a lower percentage of fixed income.”

It said that it made €200m in cash contributions to its various pension funds. “Of these payments, €91m was contributed as prescribed by the minimum funding requirements of the DNB.”